From: "Perry E. Metzger" <perry@snark.imsi.com>
Date: Wed, 4 May 94 04:59:50 PDT
To: cypherpunks@toad.com
Subject: Re: Giving Value to Digital Cash
In-Reply-To: <199405040552.AA02485@xtropia>
Message-ID: <9405041159.AA01181@snark.imsi.com>
MIME-Version: 1.0
Content-Type: text/plain



anonymous@extropia.wimsey.com says:
> Most major economies are using fiat money today, so it is clear that fiat 
> money will work.

Fiat money works because guns are used to force people to accept it.
You have to pay your taxes in it, the laws are written so that all
commercial paper requires that you use it, the government makes all
its purchases in it, etc. The result of this is that it is accepted.
It is substantially harder for people to accept fiat money that
doesn't have guns barrels backing it up.

Perry